Farewell to Legacy: A Disappointing Goodbye to a Game-Changing Life Insurance

It was only two short years ago that we wrote to you about an exciting new consumer accountable whole life product called Legacy, offer by Industrial Alliance (iA Financial Group). In a move that has left many in the financial and insurance advisory community stunned, iA has quietly withdrawn Legacy, from the Canadian market. For those of us who have championed this product and witnessed its transformative impact on client life insurance portfolios, the news comes as a profound disappointment.

Legacy was not just another life insurance offering—it was a revolutionary product that redefined what Canadians could expect from permanent life insurance. With its guaranteed cash values, guaranteed Paid-Up Additions (PUAs), and the innovative Annual Bonus based solely on the Smoothed Return Investment Account, Legacy stood head and shoulders above its competitors. It was a rare blend of flexibility, transparency, and accountability, all built on a fully guaranteed chassis.

After years of lobbying for a product that could truly compete with participating whole life policies—without the inherent risks of non-guaranteed dividends—Legacy arrived as a breath of fresh air. It was designed with high-net-worth clients in mind, particularly those seeking coverage for long-term risks exceeding $5,000,000, and it performed exceptionally well in leverage strategies and estate planning.

Unmatched Performance in a Sea of Uncertainty

What truly set Legacy apart was its consistent and superior financial performance, even when compared to popular participating whole life products and other non-guaranteed offerings. While many competitors relied on projections and assumptions that could shift with many variable conditions, Legacy delivered reliable guaranteed cash values—a feature that provided clients with peace of mind and financial clarity.

The product’s Smoothed Return Investment Account offered a level of accountability rarely seen in the industry, allowing clients to benefit from market participation while avoiding the volatility and unpredictability of traditional participating dividend policies. In head-to-head comparisons, Legacy consistently outperformed less guaranteed products, offering higher internal rates of return (IRRs) and more robust long-term value.

This level of performance, coupled with its transparency and flexibility, made Legacy a standout choice for advisors and clients alike. It wasn’t just competitive—it was transformative.

Too Good to Last?

So why was it pulled?

While iA Financial Group has not publicly disclosed the reasons, many in the industry speculate that Legacy may have been “too good” for the consumer. Its generous guarantees and superior performance likely posed challenges in a market increasingly dominated by products with more variable returns and less transparency. In a landscape where insurers often hedge their risks with non-guaranteed elements, Legacy’s unwavering commitment to guarantees may have proven unsustainable from a profitability standpoint.

This decision leaves a void. Advisors and clients alike are now left without a product that offers complete clarity, confidence, and control—qualities that are sorely needed in today’s uncertain financial climate. The removal of Legacy feels like a step backward, away from innovation and toward a more opaque, less consumer-friendly future.

We urge iA Financial Group to reconsider. The demand for products like Legacy is real, and the trust it built among advisors and clients alike is not easily replaced. In the meantime, we will continue to advocate for solutions that prioritize the long-term financial well-being of Canadians, and we remain hopeful that the spirit of Legacy will live on in future offerings.

Is There Still an Opportunity?

At first iA wanted to close the opportunity for new applications immediately.  Through discussions with them we were able to get an extension until May 29, 2026.  If you are looking for a cash value life insurance policy to address your estate planning wishes and would like to have the product that iA has deemed too good for the consumer, then reach out to us now to discuss.